Ramsey Tells 65-Year-Old Investor With $2.2M Portfolio to Skip the DSCR Loan

March 29, 2026 - 10:19

Personal finance expert Dave Ramsey offered unequivocal advice to a 65-year-old investor during a recent call-in session. The caller, identified as Jimmy, holds a $2.2 million real estate portfolio and was inquiring about Debt Service Coverage Ratio (DSCR) loans. Ramsey's response was an immediate and firm rejection of the idea.

Ramsey reiterated his long-standing principle against leveraging debt to build wealth, a cornerstone of his financial philosophy. He emphasized to the caller that the fastest path to financial security is to become completely debt-free, not to take on new loans, even for investment purposes.

The DSCR loan in question is a type of financing used by real estate investors where approval is based primarily on the expected rental income of a property, rather than the borrower's personal income. While such loans can facilitate property acquisitions without traditional income verification, Ramsey views them as an unnecessary risk.

His counsel for the investor, who is at a traditional retirement age, focused on preservation and peace of mind. Ramsey suggested that with a portfolio of that size, the priority should be enjoying the fruits of a lifetime of investing without the burden and risk associated with new debt. He advocates for a simple, debt-free approach to wealth management, especially for those entering their retirement years.